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Mar 31, 2023
Cambium Networks Q1 2023 Earnings Report
Reported a strong first quarter driven by enterprise product sales and effective cost management.
Key Takeaways
Cambium Networks reported a 25% year-over-year increase in revenue, reaching $77.4 million, driven by strong enterprise product sales. The company's profitability was excellent, with a gross margin of 51.2% (52.1% non-GAAP) and operating income of $5.6 million ($9.4 million non-GAAP).
Revenues increased 25% year-over-year to $77.4 million.
Enterprise revenues increased 130% year-over-year to $35.7 million.
GAAP net income was $4.3 million, or $0.15 per diluted share; non-GAAP net income was $6.8 million, or $0.24 per diluted share.
Adjusted EBITDA was $10.4 million, or 13.4% of revenues.
Cambium Networks
Cambium Networks
Cambium Networks Revenue by Segment
Cambium Networks Revenue by Geographic Location
Revenue by Segment
Point-to-Multi-Point Revenue
CapyFin.comPoint-to-Point Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEurope, Middle East and Africa Revenue
CapyFin.comCaribbean and Latin America Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
Cambium Networks expects revenues between $72.0-$80.0 million for the second quarter of 2023, representing an increase of approximately 4%-15% year-over-year. They also anticipate GAAP operating income between $2.1-$6.2 million and adjusted EBITDA between $6.9-$11.1 million.
Positive Outlook
- Revenues between $72.0-$80.0 million, up approximately 4%-15% year-over-year
- GAAP gross margin between 49.4%-50.9%; and non-GAAP gross margin between 50.3%-51.8%
- GAAP operating income between $2.1-$6.2 million; and non-GAAP operating income between $5.9-$10.1 million
- GAAP net income between $1.2-$4.8 million or between $0.04 and $0.17 per diluted share; and non-GAAP net income between $4.2-$7.6 million or between $0.15 and $0.27 per diluted share
- Adjusted EBITDA between $6.9-$11.1 million; and adjusted EBITDA margin between 9.6%-13.9%
Challenges Ahead
- GAAP operating expenses between $33.5-$34.5 million; and non-GAAP operating expenses between $30.3-$31.3 million
- Interest expense, net of approximately $0.6 million
- GAAP effective tax rate of approximately 11.0%-15.0%; and non-GAAP effective tax rate of approximately 17.0%-21.0%
- Paydown of debt: $0.7 million
- Capital expenditures: $1.5-$2.5 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income